Norwegian prosecutors have charged four individuals for their role in a massive fraud and money laundering operation that deceived thousands of victims worldwide. Authorities say the scheme collected over 900 million kroner ($86–87 million), with more than 700 million kroner laundered through a Norwegian law firm before being transferred to accounts in Asia.
The scam operated as a multi-level marketing structure, with victims recruited to buy “product packages” containing cryptocurrency and company shares. Investors were promised profits from gas fields, mining, and real estate, but investigators say no real investments were made. Instead, new deposits funded payouts to earlier investors, fitting the classic Ponzi scheme model.
Officials revealed that financial professionals, including lawyers and accountants, helped to conceal the money flow, making the fraud harder to detect. Europol has warned that financial crimes like these are a growing global threat, with fraud and money laundering acting as the driving force behind organised crime.
Despite the cross-border nature of the operation, Norwegian authorities stress that those responsible will be prosecuted, no matter where their victims are located. The case highlights the increasing use of professional services to facilitate fraud, a challenge that law enforcement agencies worldwide are struggling to tackle.
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Law enforcement agencies must ensure public understanding of the need for expanded investigative powers to effectively combat the increasing scale and complexity of cybercrime, Europol’s chief Catherine De Bolle stated at the Munich Cyber Security Conference.
De Bolle emphasised that cybercriminal activity is not only growing in volume but also evolving in sophistication, leveraging both traditional telecom infrastructure and advanced digital tools, including dark web marketplaces. In response, she underscored the necessity for law enforcement agencies to strengthen their technical capabilities. However, she noted that implementing large-scale investigative measures must be balanced with maintaining public confidence in state institutions.
Her remarks followed those of Sir Jeremy Fleming, former director of the UK’s cyber intelligence agency GCHQ, who spoke about the importance of maintaining public trust in intelligence operations.
De Bolle further stressed the need for stronger collaboration between government agencies, private sector entities, and international organisations to address cyber threats effectively. As cybercrime and state-sponsored cyber activities increasingly overlap, she advocated for a shift away from fragmented approaches, calling for ‘multilateral responses’ to improve collective cybersecurity readiness.
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Argentine President Javier Milei has denied endorsing the LIBRA meme coin, which recently surged in value before collapsing, leaving investors with heavy losses. He stated that he merely shared information about the token and never encouraged people to buy in. According to Milei, only a few Argentine investors were affected, with most traders coming from China and the US. He disputed reports that 44,000 people lost money, insisting the real number was closer to 5,000, primarily experienced traders who understood the risks.
Milei explained that Hayden Davis, one of LIBRA’s backers, had proposed a financial structure to support entrepreneurs struggling to secure funding. Seeing potential in the idea, he simply helped spread awareness. However, after facing political backlash, Milei admitted he must be more cautious about his public statements, acknowledging that he still acts as he did before becoming president and needs to be less accessible.
The controversy has rattled Argentina’s political and financial landscape, with opposition leaders accusing Milei of misleading the public and calling for his removal. The anti-corruption office has launched an investigation, alongside a legal probe led by Federal Judge María Servini. Meanwhile, Argentina’s financial markets took a hit, with the S&P Merval stock index dropping by 5%. Despite Milei’s insistence that he acted in good faith, scrutiny of his administration continues to intensify.
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A new report from Google states that cybercrime continues to expand, intersecting with state-backed cyber operations. Released ahead of the Munich Security Conference, research from Google’s Threat Intelligence Group and Mandiant outlines findings from their investigations in 2024 and trends observed over the past four years.
According to Google, financially motivated and state-backed cyber activities are becoming more interconnected. Cybercriminal ecosystems facilitate the acquisition of malware, vulnerabilities, and operational support, offering lower-cost alternatives to state-developed capabilities.
The report emphasises that while cybercrime and state-backed cyber operations increasingly overlap, responses to these threats require distinct strategies. Cybercrime often involves networks operating across jurisdictions, necessitating international collaboration to address its impact effectively.
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A controversy has emerged over the British government’s reported attempt to compel Apple to grant authorities access to encrypted iCloud accounts, leading to calls for increased transparency from intelligence agencies. Sir Jeremy Fleming, the former head of the UK’s GCHQ from 2017 to 2023, addressed this issue at the Munich Cyber Security Conference, highlighting the need for public understanding and trust in intelligence operations. He emphasised that an agency’s ‘license to operate’ should be grounded in transparency.
The UK government has contested the description of a ‘back door’ in relation to the notice, clarifying that it seeks to ensure Apple maintains the capability to provide iCloud data in response to lawful warrants, a function that existed prior to the introduction of end-to-end encryption for iCloud in December 2022.
Since 2020, Apple has provided iCloud data to UK authorities in response to four of more than 6,000 legal requests for customer information under non-IPA laws. However, this data excludes requests made under the Investigatory Powers Act (IPA), the UK’s primary law for accessing tech company data.
Fleming emphasised the importance of intelligence agencies providing clear explanations of their operations, particularly in relation to new technologies. He pointed out the need for a better understanding of how intelligence agencies operate in practice, particularly as technological advancements change their methods.
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A new study from the UK has raised concerns about the risks of bank runs fueled by AI-generated fake news spread on social media. The research, published by Say No to Disinfo and Fenimore Harper, highlights how generative AI can create false stories or memes suggesting that bank deposits are at risk, leading to panic withdrawals. The study found that a significant portion of UK bank customers would consider moving their money after seeing such disinformation, especially with the speed at which funds can be transferred through online banking.
The issue is gaining traction globally, with regulators and banks worried about the growing role of AI in spreading malicious content. Following the collapse of Silicon Valley Bank in 2023, which saw $42 billion in withdrawals within a day, financial institutions are increasingly focused on detecting disinformation that could trigger similar crises. The study estimates that a small investment in social media ads promoting fake content could cause millions in deposit withdrawals.
The report calls for banks to enhance their monitoring systems, integrating social media tracking with withdrawal monitoring to better identify when disinformation is impacting customer behaviour. Revolut, a UK fintech, has already implemented real-time monitoring for emerging threats, urging financial institutions to be prepared for potential risks. While banks remain optimistic about AI’s potential, the financial stability challenges it poses are still a growing concern for regulators.
As financial institutions work to mitigate AI-related risks, the broader industry is also grappling with how to balance the benefits of AI with the threats it may pose. UK Finance, the industry body, emphasised that banks are making efforts to manage these risks, while regulators continue to monitor the situation closely.
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Italy has rejected claims that Israeli spyware company Paragon ended its collaboration with Rome following allegations that its technology had been misused to target journalists and activists instead of criminals. Cabinet undersecretary for intelligence matters Alfredo Mantovano stated that Paragon had never suspended its services or terminated its contract with the Italian government. Minister for parliamentary relations Luca Ciriani also defended Italy‘s intelligence services, insisting they had acted within the law and had not used the software against protected individuals, including journalists.
Concerns arose after Meta’s WhatsApp revealed that Paragon’s spyware had been used to target multiple individuals, including a journalist and a human rights activist critical of Prime Minister Giorgia Meloni. Italy acknowledged that seven mobile phone users had been affected but denied any government involvement, calling for an investigation. Reports from The Guardian and Haaretz suggested Paragon had severed ties with Rome, doubting the government’s denial of wrongdoing.
Israel-based Paragon and its owner, Florida-based AE Industrial Partners, have not responded to requests for comment. Ciriani assured parliament that Italy’s intelligence services continue to operate fully against national security threats. He also called for the judiciary to investigate the alleged hacking of journalists and activists, stating that Italian intelligence agencies were ready to assist in uncovering the truth.
Zach Witkoff, co-founder of the Trump-affiliated crypto project World Liberty Financial, had his X account hacked on Wednesday. The hacker used the account to promote a fake memecoin project involving Barron Trump, claiming that the news would soon be confirmed by the Trump family.
World Liberty Financial quickly confirmed the hack, urging users to ignore the fraudulent Barron Trump project. This incident is part of a wider trend of crypto scams, as Ivanka Trump also warned earlier this year about a fake memecoin using her likeness to defraud investors.
World Liberty Financial, a decentralised finance project, launched its own token, WLFI, in October 2024. Despite these security issues, the project continues to operate with the Trump family’s name associated with its team.
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A Chicago family and their nanny were kidnapped for five days in October by armed men demanding a ransom in cryptocurrency. The kidnappers stole $15 million in digital assets, including Bitcoin and Ether, and forced the victims to transfer funds from their crypto accounts before releasing them.
The incident began when one of the suspects pretended to be at the door to fix a damaged garage, only to overpower the family with a gun. The victims were then transported to an Airbnb and later to another location, where they were threatened with death unless they complied with the kidnappers’ demands.
FBI agents were able to track the suspects using surveillance footage and forensic evidence. The investigation led to six arrests, with one suspect, Zehuan Wei, apprehended while trying to re-enter the US in January. The remaining suspects are believed to have fled to China.
This case highlights the growing trend of crypto-related kidnappings, as criminals target individuals with access to digital currencies. Recently, other high-profile kidnappings for cryptocurrency ransom have also made headlines, including the abduction of a Ledger co-founder and a Toronto CEO.
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Authorities have arrested four Russian nationals suspected of deploying Phobos ransomware to extort payments from victims across Europe and beyond. Europol announced that law enforcement agencies from 14 countries worked together to dismantle the network, taking down 27 servers linked to the cybercriminals. The individuals arrested were reportedly leaders of the 8Base ransomware group, a key player in distributing Phobos malware.
The operation follows a series of recent arrests targeting Phobos-related cybercrime. In June 2024, a key administrator of the ransomware was apprehended in South Korea and later extradited to the United States, while another major affiliate was arrested in Italy last year. Authorities have since issued warnings to over 400 companies worldwide about imminent cyberattacks.
Phobos ransomware has been particularly damaging to small and medium-sized businesses, which often lack strong cybersecurity protections. Europol’s latest Russian crackdown is a significant step in weakening the ransomware network and preventing further cyber extortion efforts.
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